New Delhi: The New Delhi Municipal Council (NDMC) is set to implement a new property tax regime in Lutyens’ Delhi, releasing the New Delhi Municipal Council (Property Taxes) Bye-laws 2026 for public feedback.
“Any suggestions received regarding the draft will undergo internal deliberation. Following this, the draft will be revised based on these suggestions and presented to the Council for approval. Once approved, a notification will be issued. Upon receiving central government’s approval, a Municipal Valuation Committee (MVC) will be constituted to determine the categorization of colonies within the NDMC area, tax rates, and other relevant factors,” the official added.
The rest of Delhi — under the Municipal Corporation of Delhi (MCD) — had moved to the more transparent Unit Area Method (UAM) in April 2004, and under the Jan Vishwas Act passed by Parliament in April earlier this year, the old method is expected to be phased out with the entire New Delhi area operating on UAM. Officials said the new regime, in pursuance of the amended provisions of the New Delhi Municipal Council Act, 1994, will determine property tax based on factors such as the property’s usage, the age of the construction, the building’s structure, whether it is self-occupied or rented, and the availability of infrastructure in the area, with tax rates varying depending on the width of the road. The civic body currently has around 16,400 properties under its tax net, with approximately 10,500 taxpayers, including 1,600 government-owned properties, according to an NDMC official. Officials said people can send their objections and suggestions to the property tax department by October 23.
A Municipal Valuation Committee will be set up to recommend tax rates, slabs, base values and categorisation of colonies, with base unit area values for each category remaining in force for three years and multiplied by five factors — use factor, age factor, structure factor, occupancy factor, and infrastructure and location factor, according to the document. A senior NDMC functionary said the objective is to simplify the tax system.
The civic body has said the UAM may lead to a reduction of 20% to 30% in property tax, especially for old and self-occupied properties, as the tax will no longer be based on expected rental income — which may vary among residents or establishments within the same colony — but on a uniform unit area basis applicable equally to all.
